Approved Persons
An ‘Approved Person’ is an FCA-approved individual appointed to undertake specific duties, or ‘controlled functions’, within an FCA-authorised organisation.
Individuals cannot perform regulated activities without an Approved Person’s supervision until they are deemed competent. Having responsibility over specific activities also means that when something goes wrong, the FCA will turn to that approved person to find out more.
To become and continue to be an Approved Person, the individual must follow the FCA principles and meet the role requirements to prove they are ‘fit & proper’ to do the job. This includes compliance with Conduct rules and reporting any issues that could affect their regulatory requirements.
The FCA investigation process
It is worth noting that opening an FCA investigation does not correlate with a belief that misconduct has taken place, or that people involved are guilty. The FCA is a regulator that must do its job to ensure the market remains fair for all involved.
Throughout the investigation, they will collect as many facts as possible to get a wider context and understanding of the situation. This will then help them to decide whether further action is required.
If an issue arises that needs resolving, it may be able to be rectified without serious legal action. In contrast, if a serious issue is detected, a further investigation will be launched, at which point it is important you have a legal representative by your side.
Detection & Assessment of Serious Misconduct
The FCA investigation will be a collaborative approach between internal and external parties; all those required to take part must do so. The goal is to identify and reduce the lasting effects of any misconduct at the earliest opportunity.
The FCA could enforce suspension or restrictions on your practice of business operations. Whether this applied to an individual or a business will depend on the nature of the circumstances. Additional regulatory, civil or criminal enforcements can also be made.
From pre-enquiry requests to a full investigation and attending interviews, whatever stage you are at, our team can work with you to devise a strategy and develop the correct approach to the circumstances.
Penalties could include fines, orders to pay compensation to affected parties, and custodial sentences. The serious nature of regulatory investigations means you are strongly advised to have an experienced solicitor to guide you through the process towards a favourable outcome.